ALMATY, OCT. 25 2016 (The Conway Bulletin) — Kazakhstan’s economy minister Kuandyk Bishimbayev said that the worst of an economic downturn linked to a drop in oil prices and a recession in Russia had passed, the most significant upbeat statement from the Kazakh government in two years.

Specifically, Mr Bishimbayev said that the free float of the tenge last year, which triggered a collapse in its value, had been painful but was now driving the economy and making business more competitive.

“We believe that the most difficult period has been passed for Kazakhstan’s economy. We estimate that the period was in the first quarter of this year, it was the time of the lowest oil prices,” he said.

“There has been steady growth in the economy since June this year.”

Despite Mr Bishimbayev’s upbeat message, the data points to a still sluggish economy.

Economists have predicted that Kazakhstan’s GDP growth will contract this year to nearly zero. But with oil prices pushing back up to $55/barrel, double their value from the start of the year, officials have adopted a more upbeat narrative, even if caveats are dropped in.

Talking to parliament the following day, Mr Bishimbayev said that a more efficient tax collection system was needed to increase revenues from smaller businesses which had grown used to avoiding paying VAT and other taxes.

“If we want to continue to develop our systems, of course, a certain increase in the tax burden is needed, but not at the expense of those companies which already pay full taxes but at the expense of those who work outside the system,” media quoted him as saying.

Specifically, he said a third of small businesses don’t pay their full taxes.

ENDS